Silicon Beach

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Silicon Beach is the Westside region of the Los Angeles metropolitan area that is home to over 500 technology startup companies, with emphasis on the coastal strip north of LAX to Santa Monica Mountains,[1] but the term may be applied loosely or colloquially to refer to most anywhere in the LA Basin. Major technology companies have opened offices in the region including Google, Yahoo!, YouTube, BuzzFeed, Facebook, Salesforce, AOL, Electronic Arts, Sony, EdgeCast Networks, MySpace, Amazon.com, Apple, Inc., and Netflix.[2] Additionally, several mobile ventures seeded here like Snapchat[3] and Tinder. In 2012, the region was considered the second or third most prominent technology hub in the world, according to some metrics.[4][5]

Geography[edit]

The influx of technology companies has had major impacts on the type and availability of office space and on home prices in Playa Vista, Playa Del Rey, Westchester, Santa Monica, and Venice, already high previously due to beachfront location, has exacerbated the situation and the region suffers from many of the same high cost issues that led companies to flee the San Francisco Bay Area. The effects are also spilling over into Marina del Rey, and Hermosa Beach and continues to attract technology firms, venture capital, and startups.[6]

One of the amenities of the area is relatively easy access to LAX, the biggest and most connected airport in Western North America.[7]

Start-up pockets have also emerged in nearby Culver City, West L.A., and El Segundo.[8] Other pockets include Downtown Los Angeles, Beverly Hills, Hollywood, and the San Fernando Valley, which were pricey areas even before the influx.[9][10] The tendency of companies to congregate in these centrally-located, high income areas has raised concerns[11] about the feasibility of racial minorities joining the workforce, as they tend to live in further outlying areas.[12]

Other uses[edit]

In 1983, PC Magazine reported that "some people are starting to call" Boca Raton, Florida—where IBM had developed its Personal Computer, and other technology companies had facilities—"Silicon Beach, in deference to the great valley of the West".[13] In 1984 Silicon Beach Software was formed in San Diego, California.[14] Silicon Beach Australia was used to describe that country's internet technology community in 2008.[15] There are four significant areas in Australia that are nurturing start-ups: Sydney, Melbourne, Brisbane, and Perth.[16]

Startups[edit]

Silicon Beach is also home to a number of start-up incubators and accelerators, such as Amplify.LA, Science, Disney Accelerator, and TechStars Cedars Sinai.[17] Higher education institutions headquartered in Silicon Beach include Loyola Marymount University and Otis College of Art and Design.[18] Other higher education institutions in the nearby Southern California region or with satellite campuses in/nearby Silicon Beach include: Art Center College of Design, California Institute of Technology, University of California Los Angeles, University of Southern California, and the Claremont Colleges. In the first six months of 2013, start-ups in Silicon Beach raised over $500 million in funding, and there were 94 new start-ups and nine acquisitions.[19]

List of technology companies based in Silicon Beach[edit]

Company Year founded Industry Valuation
AdColony 2011 Adtech Acquired by Opera for $350 million[20]
Age of Learning 2007 Education
Bitium 2012 Cloud Computing Acquired by Google for an unknown amount[21][22]
Branded Online 2010 Ecommerce & Online Marketing Agency
Cornerstone OnDemand 1992 Cloud
Distillery 2008 Mobile Application Development, UX/UI
Dollar Shave Club 2011 Consumer packaged goods Acquired by Unilever for $1 billion[23]
Eaze 2014 Cannabis
Enplug 2012 Software $2.5 million[24][25]
Fair 2016 Automotive, Fintech
Falcon Computing Solutions 2014 High Performance Computing, FPGA acceleration - tools and solutions
FloQast 2013 Accounting Software
Fullscreen 2011 Digital Media
Gnarbox 2014 Consumer electronics
GOAT 2015 e-commerce, Fashion (sneakers)
Guthy-Renker 1988 Direct Response Marketing
Headspace 2010 Health
The Honest Company 2012 e-commerce
Honey 2012 Cashback website, online coupons Acquired by Paypal in 2020 for $4 billion[26][27][28]
Hulu 2007 Television Streaming Services $100 million[29]
LegalZoom 1999 Legal
MatchCraft 1998 Digital Marketing Platform Technology & Services
MuteSix 2014 Performance Marketing Agency
Nasty Gal 2006 Retail Unknown - Chapter 11[30][31]
Oculus VR 2012 Virtual reality Acquired by Facebook, Inc. in 2014 for $2 billion[32]
Onestop Internet 2004 Full Service Ecommerce Agency
Ring 2012 Home Security Devices Acquired by Amazon for $1 billion[33]
Riot Games 2006 Video Games
Science 37 2014 Medical technology
Snap Inc. 2011 Social media $23 billion[34]
Swagbucks / Prodege, LLC 2007 Digital Rewards & Cash Back
Tala 2011 Fintech
Thrive Market 2013 e-commerce
TigerText 2010 Messaging, Text Analytics, Communications Infrastructure $625 million[35]
Tinder 2012 Social Media
TrueCar 2005 Automotive websites $1.65 billion[36]
Virgin Hyperloop One 2014 Transportation
Wag 2014 Pets
WebJoint[37] 2014 Cannabis
Whisper 2012 Social media
Wpromote 2001 Digital Marketing Agency
.xyz 2014 Internet Domain Registry
ZestFinance 2009 Fintech
ZipRecruiter 2010 Hiring

References[edit]

  1. ^ Machalinski, Anne (May 22, 2019). "Los Angeles Tech Scene Expands Beyond Silicon Beach". Barrons. Retrieved July 23, 2019.
  2. ^ https://laedc.org/2019/01/16/quickweb1/
  3. ^ Hernandez, Daniel (2019-08-23). "Snapchat's Disappearing Act Leaves Venice Beach Searching for Its Future". The New York Times. ISSN 0362-4331. Retrieved 2019-08-24.
  4. ^ "Startup Genome Ranks The World's Top Startup Ecosystems: Silicon Valley, Tel Aviv & L.A. Lead The Way". TechCrunch. 2012-11-20.
  5. ^ "Silicon Beach emerges as a tech hotbed". USA Today. 2012-07-15.
  6. ^ Logan, Tim (January 2, 2015) "Buoyed by Silicon Beach, Westchester enjoys a housing surge" Los Angeles Times
  7. ^ Sharp, Sonja (2019-08-21). "'I'm not even 30, and I'm flying my own jet' — Silicon Beach elites take a seat in the cockpit". Los Angeles Times. Retrieved 2019-08-21.
  8. ^ Khouri, Andrew (January 15, 2016). "Bixby Land's $49-million office building sale a sign 'it's not the old El Segundo'". Los Angeles Times. Retrieved 16 January 2016.
  9. ^ Chang, Andrea (March 7, 2015). "Tech scene takes hold in revitalized downtown L.A." Los Angeles Times.
  10. ^ Ungerleider, Neal (October 31, 2014). "Why A Subway-Building Binge Could Transform L.A.'s Tech Culture". Fast Company. Retrieved 28 December 2015.
  11. ^ "Why Tech Degrees Are Not Putting More Blacks and Hispanics Into Tech Jobs".
  12. ^ Haya El Nasser (April 29, 2015). "Job sprawl hurting minorities and the poor in suburbia". america.aljazeera.com. Retrieved 2019-08-21.
  13. ^ Porter, Martin (November 1983). "The Talk of Boca". PC Magazine. p. 162. Retrieved 22 October 2013.
  14. ^ Hill, Ryan (February 4, 2016) [www.triton.news/2016/02/813/ "San Diego is bringing back Silicon Beach"] [The Triton]
  15. ^ LeMay, Renai (July 28, 2008). "Silicon Beach Australia". ZDNet. Retrieved 2013-05-30.
  16. ^ Kohler, Alan (November 21, 2012). "Australia's "Silicon Beach" is no Entrepreneurs Paradise". The Drum. ABC.
  17. ^ "A list of top LA accelerators and incubators".
  18. ^ Staff (June 2018). "Silicon Beach: The Next Wave". LMU Magazine. Loyola Marymount University. Archived from the original on 2015-08-13.
  19. ^ "Over $500M Raised by 92 LA Startups in the First Half of 2013".
  20. ^ Gagliordi, Natalie. "Opera Software acquires AdColony for up to $350 million". ZDNet. Retrieved 2019-01-08.
  21. ^ "Bitium - Crunchbase". Crunchbase.
  22. ^ "Google Cloud acquires cloud identity management company Bitium". TechCrunch. Retrieved 2019-01-08.
  23. ^ "Unilever Buys Dollar Shave Club for $1 Billion".
  24. ^ Lawler, Ryan. "Digital Display Startup Enplug Raises $2.5 Million Seed Round". TechCrunch. AOL. Retrieved 21 May 2014.
  25. ^ Smith, Samantha. "LA Startup Goes from 0 to 100mph In Three Months". Forbes. Retrieved 22 May 2014.
  26. ^ "PayPal Completes Acquisition of Honey" (Press release). PR Newswire. January 6, 2020.
  27. ^ Taulli, Tom. "Why PayPal Paid $4 Billion For Honey Science". Forbes. Retrieved 2020-01-28.
  28. ^ Peters, Jay (2019-11-20). "PayPal acquires the company behind the Honey deal-finding extension for $4 billion". The Verge. Retrieved 2020-02-25.
  29. ^ "Hulu - Crunchbase". Crunchbase.
  30. ^ "Nasty Gal Profile on CrunchBase".
  31. ^ "Can Nasty Gal Be Saved?". 26 May 2017.
  32. ^ https://variety.com/2020/dirt/moguls/honeys-billionaire-founder-buys-60-million-bel-air-mega-mansion-1203529940/
  33. ^ Green, Dennis. "Amazon's $1 billion acquisition of the doorbell-camera startup Ring is the company doing what it does best — and it should terrify every other retailer". Business Insider. Retrieved 2019-01-08.
  34. ^ "SNAP Key Statistics | Snap Inc. Class A Common Stock Stock - Yahoo Finance". finance.yahoo.com. Retrieved 2017-03-20.
  35. ^ "Funderbeam". www.funderbeam.com.
  36. ^ "TrueCar, Inc. Common Stock (TRUE)". NASDAQ.com.
  37. ^ "These Young Founders Give Cannabis Brands The Opportunity To Market Directly To Consumers". Forbes. 2018-09-27. Retrieved 2020-02-28.

Coordinates: 33°58′35″N 118°27′04″W / 33.9764°N 118.4512°W / 33.9764; -118.4512